Page 8 - Insolvency And Bankruptcy Code

IBBI amends rules to enhance creditor representation in insolvency process

The IBBI has amended the Insolvency Resolution Process for Corporate Persons norms to introduce significant changes to enhance creditor representation in the insolvency process. The board notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations 2024 on September 24. "The amendment regulations provide for the appointment of an interim representative who will act as a representative for a class of creditors during the period when the application for appointment of the authorised representative is under consideration of the adjudicating authority for approval," IBBI said in a release. The interim representative will have the same rights and responsibilities as a duly appointed authorised representative, particularly in the meetings of the committee of creditors. This move is aimed at facilitating the effective representation of creditors that are large in number, such as homebuyers, who often face delays

Byju's insolvency case: SC reserves verdict on plea challenging NCLAT order

The Supreme Court on Thursday reserved its verdict on a plea of a US firm against the NCLAT order stopping insolvency proceedings against ed-tech firm Byju's. A bench headed by Chief Justice D Y Chandrachud asked the insolvency resolution professional (IRP) to maintain status quo till the apex court delivers its judgement in the matter. The bench, also comprising Justices JB Pardiwala and Manoj Misra, considered the plea of US firm Glas Trust Company LLC and asked the IRP not to proceed with the committee of creditor's meeting to deal with the Byju's case. While hearing the matter on Wednesday, the top court had questioned the verdict of insolvency appellate tribunal NCLAT setting aside the insolvency proceedings against Byju's and approving its Rs 158.9 crore dues settlement with the BCCI. Observing that the National Company Law Appellate Tribunal (NCLAT) did not apply its mind while closing the insolvency proceedings against the ed-tech major, the bench had hinted that it may sen

SpiceJet resolves $16.7 mn dispute with Engine Lease Finance Corporation

Representatives from both SpiceJet and ELFC are set to formalise the agreement, effectively ending all legal proceedings between the two

IBBI chief asks insolvency professionals to be transparent to improve bids

IBBI Chairperson Ravi Mital on Tuesday asked insolvency professionals to be as transparent as possible during the resolution process as that will help in improving the bids and reduce haircuts. Speaking at a conference organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) in the national capital, he said insolvency professionals and insolvency professional entities are the fulcrum of the insolvency system. While highlighting that the insolvency professionals need to be mindful of time and delays, Mital said, "be as transparent as possible during the bidding process. This will improve bids, reduce haircuts and improve image of the IBC ecosystem," according to a release issued by IIIPI. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).

Kulwant Singh takes charge as Executive Director of regulatory body IBBI

Kulwant Singh, a 1999 batch officer of the Indian Audit and Accounts Service, has taken charge as Executive Director of the Insolvency and Bankruptcy Board of India (IBBI), according to a release. Earlier, Singh has served as the Director General of Audit, East Coast Railway. "Kulwant Singh took charge as Executive Director, Insolvency and Bankruptcy Board of India (IBBI), on 11th September 2024," a release dated September 11 by the IBBI said. Singh has a graduate degree in law. He has completed more than 25 years in various capacities in the office of Comptroller & Auditor General of India (C&AG). He was also posted as Principal Director of Audit in Embassy of India, Washington DC and Director of Audit in High Commission of India, London. Last year in December, IBBI announced that Jithesh John has taken charge as an executive director. Prior to that, IBBI in October had announced that Sandip Garg has assumed charge as a Whole Time Member in the Bankruptcy Board. IBBI is a key

Byju's auditor BDO resigns after start of bankruptcy proceedings, firm says

Byju's defended its inability to provide the documents, saying in a statement the materials were requested from the firm's board, which has been suspended

Indian tax officials demand $101 million in Byju's insolvency process

The company is being run by court-appointed resolution professional Pankaj Srivastava who is inviting lenders, employees, vendors and government to claim unpaid dues

US lender Glas Trust not part of insolvency panel of Byju's: Report

Byju's was once a darling of global investors and valued at $22 billion in 2022, but is now facing insolvency due to its dispute with US lenders

Byju's foreign investors ask SC to hear their concerns in insolvency case

The four investors are the biggest foreign shareholders in Byju's with a combined stake of nearly 17 per cent

Ibbi guidelines for CoC need monitoring mechanism, say IBC experts

Earlier this month, the insolvency regulator introduced guidelines for CoC that steer the insolvency resolution process to stem the value erosion that occurs due to delays and bring more transparency

Rescued firms 2.5 times those liquidated in realty sector, shows IBBI data

IBC experts feel that despite the positive trend of more resolutions than liquidations in real estate insolvencies under the IBC, several challenges persist

Insolvency Board mandates to provide unique ID to each valuation report

The Insolvency and Bankruptcy Board of India will provide a unique identification number for each valuation report prepared under the insolvency law to ensure authenticity, the board said in a circular on Monday. IBBI is the designated authority for registration, monitoring and development of valuers under the Companies Act, 2013. As per the current practice, Registered Valuer (RV)/ Register Valuers Entity (RVE) submit the valuation reports with or without mentioning any reference number leading to potential issues concerning verification. "In order to ensure authenticity and to have a unique reference number of the valuation reports, it has been decided to provide a Valuation Report Identification Number (VRIN) for each valuation conducted under the Code," the IBBI circular said. This circular applies to all valuation reports dated on or after August 12. Further, the IBBI in consultation with Registered Valuers Organisations has developed an online module which can be accessed ..

Coffee Day shares tumble 29% in 2 days: What's brewing at CCD operator?

Coffee Day NCLT proceedings: The Bengaluru Bench of NCLT had admitted IDBI Bank's plea to initiate insolvency proceedings against Coffee Day Enterprises for loans worth Rs 228 crore

NCLT orders insolvency trial against Coffee Day Enterprises on IDBI claims

Corporate dispute tribunal NCLT has ordered initiating insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), the parent company of Coffee Day Group which operates Cafe Coffee Day chain of coffee houses. The Bengaluru bench of the NCLT (National Company Law Tribunal) on August 8 admitted the plea filed by IDBI Trusteeship Services Ltd (IDBITSL) claiming a default of Rs 228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company. CDEL, which also owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans, had defaulted in the payment of coupon payments of redeemable non-convertible debentures (NCDs). The financial creditor had subscribed 1,000 NCDs through private placement and paid Rs 100 crore towards the subscription in March 2019. For that CDEL executed and entered into an agreement with IDBITSL agreeing to appoint as the debenture trustee for the debenture

IBBI introduces self-regulatory guidelines for committee of creditors

To ensure their professional competence, the CoC must keep themselves updated with the provisions of the Code, rules, and regulations, according to the guidelines

Adani Power emerges top bidder for stressed KSK Mahanadi proj at Rs 27K-cr

KSK Mahanadi is currently undergoing insolvency proceedings at the National Company Law Tribunal (NCLT). Coal India, NTPC, Vedanta, JSW Energy were among the other bidders

Resolutions under Insolvency and Bankruptcy Code highest in FY24: Crisil

Recovery for financial creditors, however, declined to 27% compared to 36% in FY23

NCLAT approves Byju's settlement with BCCI, sets aside insolvency plea

In a major relief to Byju's, the NCLAT on Friday set aside insolvency proceedings against the troubled edtech major over a sponsorship deal and approved a Rs 158 crore settlement with the Board of Control for Cricket in India. The National Company Law Appellate Tribunal (NCLAT), however, passed the order with a caveat that any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to a revival of the insolvency proceedings against Byju's. The appellate tribunal also dismissed the allegation of round-tripping levelled by Byju's US-based lenders, saying they failed to provide any evidence for the same. The tribunal further said the money was paid by Riju Raveendran (brother of Byju Raveendran) through sales of his shares. "In view of the undertaking given and affidavit, the settlement between the parties (is) approved and as a result appeal succeeds and impugned order (passed by the NCLT) is set aside," said a two-member Chennai bench in

Byju's lender asks court not to quash insolvency proceedings against firm

Glas Trust says Byju and his brother Riju used money owed to lenders to clear the Indian cricket board's dues and that the insolvency proceedings should continue

Byju's vs BCCI row: Edtech platform, cricket board reach settlement

Ed-tech startup Byju's will make payment to BCCI, founder Byju Raveendran's brother Riju Raveendran will complete the process, the lawyer added